“And to do it, we had to both delay our growth and increase our production to a level well in excess of demand. “It took a long time to refill that hole,” Cyr said. To avoid this in the future, the company is increasing capacity, producing in excess of demand, and buffering its manufacturing capacity against its 2022 guidance expectations. The company has been working to refill a gap in trade inventory incurred in 2020 and carried through to early 2021. Adjusted gross profit for the full year totaled $189.5 million, or 44.5% of net sales, compared to $154.1 million, or 48.3% of net sales, in 2020. These costs also affected gross profit for Freshpet’s full-year earnings in 2021, which totaled $162.1 million, or 38.1% of net sales, up from $132.9 million, or 41.7% of net sales, in 2020. The company attributed this decrease in gross profit as a percentage of net sales to increased production costs at its Kitchens South location, its wage increase plan for employees, capacity investments and ingredient inflation. Adjusted gross profit totaled $48.4 million, or 41.7% of net sales, compared to $38.7 million, or 45.8% of net sales, in the fourth quarter of 2020. Gross profit was up for the fourth quarter, totaling $41.2 million and 35.6% of net sales. Increased SG&A expenses were attributed to increased costs for freight and other logistics, increased operating costs, share-based compensation and increased media expense. For the full year, SG&A expenses came to $186.8 million, up 38.5% from 2020. We believe our plan for 2022 delivers the right balance – keeping us on track to achieve our 2025 goals and enable us to change the way people nourish their pets forever."įreshpet attributed higher net loss to increased selling, general and administrative expenses (SG&A), which totaled $48.9 million in the fourth quarter, up 45% from the fourth quarter of 2020, and made up roughly 42.2% of the company’s net sales over the quarter. We plan to use that capacity wisely – budgeting conservatively to ensure the reliability of our operations in an uncertain environment but also planning aggressively to maximize our growth potential. "Over the past two years, we have invested in significant new capacity and the talent to support it. “We finally have the capacity needed to support Freshpet's significant topline growth potential – while also improving the reliability of our operations," Cyr stated. The company prefaced these results in its preliminary fourth-quarter and full-year report in January. Net sales totaled $425.5 million, up 33.5% from $318.8 million in 2020, and adjusted EBITDA was $43 million, down 8.3% from 2020. Adjusted EBITDA was $9.7 million, down 24.8% from the fourth quarter of fiscal 2020.įor the full year 2021, Freshpet reported a net loss of $29.7 million, up 828.1% from $3.2 million in 2020. Net sales totaled $115.9 million, up 37.1% from $84.5 million in the fourth quarter of fiscal 2020. “We learned that in order to deliver a long-term sustainable growth Freshpet is capable of, we need to do a better job preparing for and insulating ourselves from those issues.”įor its fourth quarter results, the fresh pet food company reported a net loss of $9.3 million, up 181.8% from $3.3 million in the fourth quarter of fiscal 2020. “Our operations wobbled numerous times along the way, and we are keenly aware of the impact those have had on our many stakeholders, most notably our customers and consumers,” Cyr added.
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